Powershares QQQ Trust (NASDAQ: QQQQ)
at Critical Resistance Says Market Timer Frank Kollar
February 24, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ)
had a nice rally from their February 5 correction lows.
But they have now reached and reversed from strong resistance.
Last Friday and again on Monday, Powershares QQQ reached
the Fib 61.8% retracement level at $45.00 a share. On Monday
the Q’s lost ground and on Tuesday they reversed
hard.
This level is where most pullbacks start and it is being
replicated on many charts including some of the major indexes.
So Tuesday’s decline was expected, but the questions
are; do we head lower from here and is this a bearish reversal?
Or, is it just a one or two day temporary setback in an
ongoing rally.
The Powershares QQQ may have more upside ahead but the
ETF needs to regain and then close above $45.00 a share
in coming days. If it does, we should see the Q’s
run for their prior January highs.
Support is down at $42.62, about 5% below Tuesday’s
close.
The Fibtimer.com (http://www.fibtimer.com)
Stock Timing Strategy holds a position in the Powershares
QQQ Trust.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com)
which offers market timing strategies for S&P and
Nasdaq index fund traders, as well as bond, gold, small
cap, sector, ETF and stock trading strategies.
Kollar’s research has shown
that the financial markets are in tradable trends approximately
80 percent of the time. FibTimer strategies define trends
and trade them in both advancing and declining markets.
Caring nothing about what newscasters say or what the
latest economic indicator predicts, trends are where
the profits are, and that is where FibTimer is.
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